(5-13-25) Union Schools, a rural school district based in Modoc, Indiana in Randolph County, educates more than 290 students in person and about 7,500 through virtual programs, according to the state’s enrollment report. Under Indiana’s new property tax reform law, it will be dissolved in 2027 and the area redistricted among other school corporations.
WFYI: With no notice and no public input, Indiana lawmakers shut down a rural school district
Under Senate Enrolled Act 1, signed by Indiana Gov. Mike Braun on April 15, Union Schools will be broken up by 2027. Its students and funds will be split between two neighboring school districts – Blue River Valley Schools in Henry County and Monroe Central Schools in Randolph County. Both districts will also receive a portion of Union’s property tax revenue.
According to state data about 64% of students who reside in Union district boundaries seek out other options outside of Union.
Superintendent of Union Schools Galen Mast told WFYI that his school district is financially stable because of their virtual school contract that started in 2017 — Indiana Digital Learning School. Union takes home a 5% oversight fee, which comes out to about $3 million a year in additional revenue.
WTHR – ‘Plainly unlawful’ | Union School Corporation sues over law that will dissolve it in 2027
On May 8, lawyers for the district filed a lawsuit, and are seeking an injunction.
USC Complaint for Declaratory and Injunctive Relief
The lawsuit alleges the law is violating the Indiana Constitution:
- the prohibition against local and special legislation
- not limiting SEA 1 to a single subject
- denying students a general and uniform system of education
- depriving elected officials of serving their term of office
- denying the Plaintiffs and their students privileges and immunities available to other school corporations, students and school board members
- denying the Plaintiffs with the ability to comply with carrying out their statutorily and Constitutionally mandated obligations to provide the students of Union School Corporation with a free, fair and appropriate public education
State Rep. J.D. Prescott (R-Union City)
“The Union School Corporation has faced longstanding challenges, including some of the lowest reading proficiency scores in the state and declining enrollment. Only 42.6% of their third graders passed the Indiana Reading Evaluation and Determination (IREAD) compared to more than 90% in neighboring districts, and over 60% of students who live in the district boundaries have transferred out and attend school elsewhere. This amendment is about starting a conversation on how to better serve these students and ensure they have access to a quality education.”
State Sen. Scott Alexander (R – Muncie)
“This amendment was proposed due to Union School Corporation’s continuously low reading proficiency and state assessment scores, which are some of the lowest in the state – 44.2% passed the IREAD in 2024, only 3.7% tested proficient in Mathematics and English Language Arts in the ILEARN, and 29.62% tested proficient on English and Math in the SAT exam. These problems are not a new development, and this language was brought forward to help initiate the discussion on how to ensure these students are receiving the best education possible.”
How Dugger Union remained open…
Another small school in southern Indiana several years ago was to be closed by its school district. Citizens in Dugger wouldn’t stand for that…they kept the school open and today it remains a vital part of the community.
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- Kyndall Foli – ‘I love everything about the game’
- They’re Back In The IHSAA…Dugger Union!
Mercer County Outlook 